HOUSE BILL No. 4608 April 9, 1997, Introduced by Rep. Profit and referred to the Committee on Tax Policy. A bill to amend 1995 PA 29, entitled "Uniform unclaimed property act," by amending sections 11, 18, 19, 20, 23, 25, and 31 (MCL 567.231, 567.238, 567.239, 567.240, 567.243, 567.245, and 567.251); and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1) Except as provided in subsections (2) and (5), 2 stock or other intangible ownership interest in a business asso- 3 ciation, the existence of which is evidenced by records available 4 to the business association, is presumed abandoned and, with 5 respect to the interest, the business association is the holder, 6 if a dividend, distribution, or other sum payable as a result of 7 the interest remains unclaimed by the owner for75 years and 8 the owner, within75 years, has not met any of the following 9 requirements: 01945'97 * JLB 2 1 (a) Communicated, in writing, with the business association 2 regarding the interest or a dividend, distribution, or other sum 3 payable as a result of the interest. 4 (b) Otherwise communicated with the business association 5 regarding the interest or a dividend, distribution, or other sum 6 payable as a result of the interest, as evidenced by a memorandum 7 or other record on file with the business association prepared by 8 an employee of the business association. 9 (2) At the expiration of a7-year5-YEAR period following 10 the failure of the owner to claim a dividend, distribution, or 11 other sum payable to the owner as a result of the interest, the 12 interest is not presumed abandoned unless there have been at 13 least75 dividends, distributions, or other sums paid during 14 the period, none of which has been claimed by the owner. If715 5 dividends, distributions, or other sums are paid during the 167-year5-YEAR period, the period leading to a presumption of 17 abandonment commences on the date payment of the first such 18 unclaimed dividend, distribution, or other sum became due and 19 payable. If75 dividends, distributions, or other sums are 20 not paid during the presumptive period, the period continues to 21 run until there have been75 dividends, distributions, or 22 other sums that have not been claimed by the owner. 23 (3) The running of the7-year5-YEAR period of abandonment 24 ceases immediately upon the occurrence of a communication 25 referred to in subsection (1). If any future dividend, distribu- 26 tion, or other sum payable to the owner as a result of the 27 interest is subsequently not claimed by the owner, a new period 01945'97 * 3 1 of abandonment commences and relates back to the time a 2 subsequent dividend, distribution, or other sum became due and 3 payable. 4 (4) At the time an interest is presumed abandoned under this 5 section, any dividend, distribution, or other sum then held for 6 or owing to the owner as a result of the interest, and not previ- 7 ously presumed abandoned, is presumed abandoned. 8 (5) This act does not apply to any stock or other intangible 9 ownership interest enrolled in a plan that provides for the auto- 10 matic reinvestment of dividends, distributions, or other sums 11 payable as a result of the interest unless the records available 12 to the administrator of the plan show, with respect to any intan- 13 gible ownership interest not enrolled in the reinvestment plan, 14 that the owner has not, within 15 years, communicated in any 15 manner described in subsection (1). 16 Sec. 18. (1) A person holding property presumed abandoned 17 and subject to the state's custody as unclaimed property under 18 this act shall report to the administrator concerning the prop- 19 erty as provided in this section. 20 (2) The report shall be verified and shall include all of 21 the following: 22 (a) The name, if known, social security number, if known, 23 and last known address, if any, of each person appearing from the 24 records of the holder to be the owner of property of the value of 25 $50.00 or more presumed abandoned under this act. This subdivi- 26 sion does not apply to travelers checks and money orders. 01945'97 * 4 1 (b) In the case of unclaimed funds of $50.00 or more held or 2 owing under any life or endowment insurance policy or annuity 3 contract, the full name and last known address of the insured or 4 annuitant and of the beneficiary according to the records of the 5 insurance company holding or owing the funds. 6 (c) In the case of the contents of a safe deposit box or 7 other safekeeping repository or of other tangible property, a 8 description of the property and the place where it is held and 9 may be inspected by the administrator and any amounts owing to 10 the holder. 11 (d) The nature and identifying number, if any, or descrip- 12 tion of the property and the amount appearing from the records to 13 be due. However, items of value under $50.00 each may be 14 reported in the aggregate. 15 (e) The date the property became payable, demandable, or 16 returnable, and the date of the last transaction with the appar- 17 ent owner with respect to the property. 18 (f) Other information the administrator requires by rule as 19 necessary for the administration of this act. 20 (3) If the person holding property presumed abandoned and 21 subject to the state's custody as unclaimed property under this 22 act is a successor to other persons who previously held the prop- 23 erty for the apparent owner, or the holder has changed its name 24 while holding the property, the holder shall file with the report 25 all known names and addresses of each previous holder of the 26 property. 01945'97 * 5 1 (4) Except as otherwise provided in this subsection, the 2 report shall be filed on or beforeDecember 31NOVEMBER 1 of 3 each year for the 12-month period ending on the immediately pre- 4 ceding June 30. The administrator may postpone the date to file 5 a report, on written request by any person required to file a 6 report under this section. THE ADMINISTRATOR MAY EXTEND THE 7 FILING DATE FOR UP TO 60 DAYS AFTER THE DEADLINE IF AN ESTIMATED 8 PAYMENT IS PAID ON OR BEFORE THE DEADLINE FOR THE 12-MONTH PERIOD 9 ENDING ON THE IMMEDIATELY PRECEDING JUNE 30. REMITTANCE OF AN 10 ESTIMATED PAYMENT WITHOUT A REPORT ON OR BEFORE THE DEADLINE 11 SHALL BE CONSIDERED A REQUEST FOR EXTENSION. A REQUEST FOR 12 EXTENSION OF TIME TO FILE THE REPORT IS NOT A REQUEST FOR AN 13 EXTENSION OF TIME TO REMIT PAYMENTS. INTEREST AND PENALTIES WILL 14 NOT ACCRUE DURING THE EXTENSION PERIOD AGAINST A PERSON WHO 15 REMITS AN ESTIMATED PAYMENT. THE ADMINISTRATOR SHALL DETERMINE 16 HOW ESTIMATED PAYMENTS ARE TO BE REMITTED. 17 (5) Not LESS THAN 60 DAYS OR more than120365 days before 18 filing the report required by this section, the holder in posses- 19 sion of property presumed abandoned and subject to the state's 20 custody as unclaimed property under this act shall send written 21 notice to the apparent owner at his or her last known address 22 informing him or her that the holder is in possession of property 23 subject to this act if all of the following requirements are 24 met: 25 (a) The holder has in its records an address for the appar- 26 ent owner that the holder's records do not disclose to be 27 inaccurate. 01945'97 * 6 1 (b) The claim of the apparent owner is not barred by the 2 statute of limitations. 3 (c) The property has a value of $50.00 or more OR, IF THE 4 HOLDER FILING A REPORT UNDER THIS SECTION IS REPORTING FOR THE 5 CURRENT REPORT YEAR AT LEAST 25,000 PROPERTIES OVER $50.00 EACH, 6 THE PROPERTY HAS A VALUE OF $100.00 OR MORE. 7 Sec. 19. (1) The administrator shall cause a notice to be 8 published not later thanJuneNOVEMBER 1 of the year immedi- 9 ately following the report required by section 18at least once10a week for 2 consecutive weeksin a newspaper of general circu- 11 lation in the county of this state in which is located the last 12 known address of any person named in the notice. If no address 13 is listed or the address is outside this state, the notice must 14 be published in the county in which the holder of the property 15 has its principal place of business within this state OR ANOTHER 16 COUNTY AS DETERMINED BY THE ADMINISTRATOR. 17 (2) The published notice shall be entitled "notice of names 18 of persons appearing to be owners of abandoned property" and con- 19 tain all of the following: 20 (a) The names, in alphabetical order,and last known21address, if any,of persons listed in the report and entitled to 22 notice within the county as specified in subsection (1). 23 (b) A statement that information concerning the property may 24 be obtained by any person possessing an interest in the property 25 by addressing an inquiry to the administrator. 01945'97 * 7 1 (c) A statement informing an owner of property held by the 2 administrator on how to file a claim with the administrator to 3 receive his or her property. 4 (3) The administrator is not required to publish in the 5 notice any items of less than $50.00 unless the administrator 6 considers their publication to be in the public interest. 7 (4) This section is not applicable to sums payable on trav- 8 elers checks, money orders, and other written instruments pre- 9 sumed abandoned under section 5. 10 Sec. 20. (1) A person who is required to file a report 11 under section 18 shall at the time for filing the report pay or 12 deliver to the administrator all abandoned property that is 13 required to be reported under section 18 OR ANY BALANCE OWING IF 14 AN ESTIMATED PAYMENT WAS MADE UNDER SECTION 18. 15 (2) The holder of an interest under section 11 shall deliver 16 a duplicate certificate or other evidence of ownership if the 17 holder does not issue certificates of ownership to the 18 administrator. Upon delivery of a duplicate certificate to the 19 administrator, the holder and any transfer agent, registrar, or 20 other person acting for or on behalf of a holder in executing or 21 delivering the duplicate certificate is relieved of all liability 22 of every kind in accordance with the provision of section 21 to 23 every person, including any person acquiring the original certif- 24 icate or the duplicate of the certificate issued to the adminis- 25 trator, for any losses or damages resulting to any person by the 26 issuance and delivery to the administrator of the duplicate 27 certificate. 01945'97 * 8 1 Sec. 23. (1) Except as provided in subsections (2) and (3), 2 the administrator,withinNOT LATER THAN 3 years after the 3 receipt of abandoned property, shall sell it to the highest 4 bidder at public sale in whatever city in the state affords, in 5 the judgment of the administrator, the most favorable market for 6 the property involved. The administrator may decline the highest 7 bid and reoffer the property for sale if, in the judgment of the 8 administrator, the bid is insufficient. If, in the judgment of 9 the administrator, the probable cost of sale exceeds the value of 10 the property, the property need not be offered for sale. Any 11 sale held under this section shall be preceded by a single publi- 12 cation of notice, at least 3 weeks in advance of sale, in a news- 13 paper of general circulation in the county in which the property 14 is to be sold. 15 (2) Securities listed on an established stock exchange shall 16 be sold at prices prevailing at the time of sale on the 17 exchange. Securities not listed on an established stock exchange 18 may be sold over the counter at prices prevailing at the time of 19 sale or by any other method the administrator considers 20 advisable. 21(3) Unless the administrator considers it to be in the best22interest of the state to do otherwise, all securities, other than23those presumed abandoned under section 11, delivered to the24administrator shall be held for at least 1 year before the admin-25istrator may sell them.26 (3)(4)Unless the administrator considers it to be in the 27 best interest of the state to do otherwise, all securities 01945'97 * 9 1 presumed abandoned undersection 11THIS ACT and delivered to 2 the administrator shall beheld for at least 3 years before the3administrator may sell them. If the administrator sells any4securities presumed abandoned under section 11 before the expira-5tion of the 3-year period, any person making a claim under this6act before the end of the 3-year period is entitled to either the7proceeds of the sale of the securities or the market value of the8securities at the time the claim is made, whichever amount is9greater, less any amounts deducted under section 24(2). A person10making a claim under this act after the expiration of the 3-year11period is entitled to receive either the securities delivered to12the administrator by the holder, if they still remain in the13hands of the administrator, or the proceeds received from sale,14less any amounts deducted under section 24(2), but noSOLD 15 WITHIN 1 YEAR OF THE RECEIPT OF THE SECURITIES. A personhas16anyMAKING A claim under this act against the state, the holder, 17 any transfer agent, registrar, or other person acting for or on 18 behalf of a holderforIS NOT ENTITLED TO any appreciation in 19 the value of the property occurring after delivery by the holder 20 to the administrator. 21 (4)(5)The purchaser of property at any sale conducted by 22 the administrator under this act takes the property free of all 23 claims of the owner or previous holder of the property and of all 24 persons claiming through or under the owner or previous holder. 25 The administrator shall execute all documents necessary to com- 26 plete the transfer of ownership. 01945'97 * 10 1 Sec. 25. (1) A person, excluding another state, claiming an 2 interest in any property paid or delivered to the administrator 3 under this act, may file with the administrator a claim on a form 4 prescribed by the administrator and verified by the claimant. 5 (2) The administrator shall consider each claim within 90 6 days after it is filed and give written notice to the claimant if 7 the claim is denied in whole or in part. The notice may be given 8 by mailing it to the last address, if any, stated in the claim as 9 the address to which notices are to be sent. If no address for 10 notices is stated in the claim, the notice may be mailed to the 11 last address, if any, of the claimant as stated in the claim. No 12 notice of denial need be given if the claim fails to state either 13 the last address to which notices are to be sent or the address 14 of the claimant. 15 (3) If a claim is allowed, the administrator shall pay over 16 or deliver to the claimant the property or the amount the admin- 17 istrator actually received or the net proceeds if it has been 18 sold by the administrator, plus any additional amount required by 19 section 22.If the claim is for property presumed abandoned20under section 11 that was sold by the administrator within 321years after the date of delivery, the amount payable for that22claim is the value of the property at the time the claim was made23or the net proceeds of sale, whichever is greater.If the prop- 24 erty claimed was interest bearing to the owner on the date of 25 surrender by the holder, AND IF THE DATE OF SURRENDER IS ON OR 26 AFTER MARCH 28, 1996, the administrator also shall pay interest 27 at a rate of 6% a year or any lesser rate the property earned 01945'97 * 11 1 while in the possession of the holder. Interest begins to accrue 2 when the INTEREST BEARING property is delivered to the adminis- 3 trator and ceases on the earlier of the expiration of 10 years 4 after delivery or the date on which payment is made to the 5 owner. No interest on interest bearing property is payable for 6 any period beforethe effective date of this actMARCH 28, 7 1996. 8 (4) Any holder who pays the owner for property that has been 9 delivered to the state and which, if claimed from the administra- 10 tor, would be subject to subsection (3) shall add interest as 11 provided in that subsection. The added interest must be repaid 12 to the holder by the administrator in the same manner as the 13 principal. 14 Sec. 31. (1) The administrator may require a person who has 15 not filed a report under this act OR A PERSON WHO THE ADMINISTRA- 16 TOR BELIEVES HAS FILED AN INACTIVE, INCOMPLETE, OR FALSE REPORT, 17 to file a verified reportstatingIN A FORM SPECIFIED BY THE 18 ADMINISTRATOR. THE REPORT SHALL STATE whether the person is 19 holding any unclaimed property reportable or deliverable under 20 this act, DESCRIBE UNCLAIMED PROPERTY NOT PREVIOUSLY REPORTED OR 21 AS TO WHICH THE ADMINISTRATOR HAS MADE INQUIRY, AND SPECIFICALLY 22 IDENTIFY AND STATE THE AMOUNTS OF PROPERTY THAT MAY BE IN ISSUE. 23 (2) The administrator, at reasonable times and upon reason- 24 able notice, may examine the records of a person to determine 25 whether the person has complied withthe provisions ofthis 26 act. The administrator may conduct the examination even if the 27 person believes he or she is not in possession of any property 01945'97 * 12 1 reportable or deliverable under this act. THE ADMINISTRATOR MAY 2 CONTRACT WITH ANY OTHER PERSON TO CONDUCT THE EXAMINATION ON 3 BEHALF OF THE ADMINISTRATOR. 4 (3) If a person is treated under section 13 as the holder of 5 the property only insofar as the interest of the business associ- 6 ation in the property is concerned, the administrator, pursuant 7 to subsection (2), may examine the records of the person if the 8 administrator has given the notice required by subsection (2) to 9 both the person and the business association at least 90 days 10 before the examination. 11 (4) If an examination of the records of a person results in 12 the disclosure of property reportable and deliverable under this 13 act, the administrator may assess the cost of the examination 14 against the holder at the rate of $50.00 a day for each examiner; 15 however, the charges shall not exceed the value of the property 16 found to be reportable and deliverable. The cost of examination 17 made pursuant to subsection (3) shall be imposed only against the 18 business association. 19 (5) If a holder fails after the effective date of this act 20 to maintain the records required by section 32 and the records of 21 the holder available for the periods subject to this act are 22 insufficient to permit the preparation of a report, the adminis- 23 trator may require the holder to report and pay an amount as may 24 reasonably be estimated from any available records. 25 Enacting section 1. Section 43 of the uniform unclaimed 26 property act, 1995 PA 29, MCL 567.263, is repealed. 01945'97 * Final page. JLB